Amazon Technical Analysis (NASDAQ:AMZN)
Technical chart patterns are studied in depth by people who strongly believe in technical analysis. These type of investors who look at trading charts or technical stock charts are usually traders rather than value investors. When a chart pattern that can predict future Amazon stock price movements is formed, the AMZN stock chart can become a key tool for a technical analyst.
View technical indicators like moving averages (SMA and EMA), and bollinger bands for Amazon. Technical analysis uses an approach for Amazon stock analysis that does not care for the fair "value" of a company but uses price and volume data only.
Amazon Moving Average:
AMZN stock price movements can be forecasted by using triggers based on moving averages, which are also some of the simplest technical indicators. The way the averages are calculated in each of the 2 popular cases, that is SMA and EMA varies, however the interpretation of Amazon chart patterns after the calculations remain the same. The 100 day moving average of 801.86 is below the last closing price of 845.61. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Amazon are mostly signals of long term trends and will help long term traders.
Amazon Bollinger Bands:
Bollinger Bands developed from the concept of trading bands and can be used to measure the high-low range of Amazon stock price relative to previous trades. The stock price is trading between the average and the lower band in the context of Amazon bollinger bands.
Amazon Moving Average Convergence Divergence or MACD:
The moving average convergence divergence or MACD is a technical indicator which helps gauge the stock price trend, as the indicator is useful in understanding the strength, direction and momentum of the stock price. The Amazon MACD indicator is below 0 indicating a bearish trend.
Amazon Relative Strength Index:
The relative strength index compares the magnitude of recent gains to recent losses and is a momentum indicator. It attempts to assess overbought and oversold conditions of a stock. The relative strength index of AMZN stock is 48.75. .